Business grade 11 term 1 chapter 3 Management and Entrepreneurship

what is management?

management is the process of accepting accountability for the innovative application of resources in order to achieve bs goals.

what are the three different levels of management?

top management

middle management

lower management

top management decisions

strategic decisions

i.e. planing - sustainable

top management role examples

CEO

CFO

COD

Director

top management skills

conceptual

top management extra info

integrates demands of different interest groups while taking responsibility of overall bs results and performance in the market place

middle management decisions

tactical decisions (medium term)

middle management role examples

Assistant manager

General manager

Plant manager

middle management skills

interpersonal

middle management extra information

interpret top management decisions in terms of demand and impact in each business function.

make sure overall plan is implemented, ensuring synergy between the different areas in business

lower management decisions

operational / day-to-day / technical

lower management role examples

supervisor

floor manager

team leader

lower management skills?

day-to-day

lower management extra info

operations within parameters described by the policies and procedures by the business function

what do all three management levels need to perform?

(POLC)

this is also known as the management tasks

(vision and mission)

planning

organising

leading

controlling

describe planning

first function where combination creative and logical thinking is used to performance of bs

what questions should you ask when planning?

what should be done?

how should it be done?

when should it be done?

who should be doing it?

what are the 3 principles of effective planning?

rational process aimed at the future

funnel approach

flexible

rational process aimed at the future

- bridge gap

- debate and discuss + formulate vission, mission, objectives, policies and procedures

-where/how to obtain resources

funnel approach

acknowledge one role player within macro and market.

may be influenced by various factors (politics, economy, social factors, tech developments, legistration, environment pressure, competition, supplier and consumer internal factors e.g. employees, availability of financial resources and management competence)

Do environmental scanning

flexible

adapt internal or external pressures

limited to resources

asses potential benefits vs cost to ensure long term direction.

how does one ensure that planning takes place at all levels in the business?

clearly communicate long-term direction of business to understand. Buy-in from lower levels of management.

manager = given + guidance from superior when he/she engages in planning at a lower level to ensure the plans are realistic and economical

accountable for plans and the implementation

why is planning important?

- focused on bs objectives

- minimize risks and uncertainty (prepare for changes both external and internal environments), be proactive by looking changes in trends either to capitalise on new trends and/or to put contingency plans in place to prevent a crisis

- integration of different bs functions in order to ensure there is coordination to achieve overall vision/mission of the bs

- facilitates control, plan is developed - benchmark against which to measure performance. Problems/deviations = investigated.

Control can either be executed if sound planning has taken place.

what are the 5 steps in the planning process?

establishing objectives

deciding the planning period

considering alternatives

implementing plan

control process

what falls under = step 1

establishing objectives

top management = overall direction of bs (vision/mission + long-term objectives)

keep the external factors in mind (economic conditions, market trends, competitor and consumer behavior) as well as the internal resources

communicate functional management

step 2

Deciding on the planning period

reasonably anticipated

step 3

considering alternatives

feasibility+ viability = identify plan = best cost and benefit ratio

Have a plan B

step 4

implementing plan

allocate necessary resources to support plan

step 5

controlling process

achieved according to benchmark set and time period

what does organising involve

identifying activities that should be undertaken

grouping activities/ dividing

what are the 4 steps involved in organising?

consider objectives

identify and grouping activities

assigning of duties

delegating authority

what are the advantages of proper organisation?

patterns of communication

authority and responsibility

create proper balance

stimulate creativity

encourage growth

what are the 5 principles of leading?

harmony of objectives

effective/clear communication

unity of direction

direct supervision

follow up

what are two explanations of a manager vs a leader

manager = appointed in a particular position within business

leader = influences people to do what he/she/the situation requires

manager = formal power

leader = informal power

what does sound leadership consist of?

planner

able to make decisions

guide people

encourage others

take initiative

mediator and arbitrator

what are the 3 different leadership/management styles?

autocratic leadership

democratic leadership

laissez faire leadership

autocratic leadership

commands/instructs

formulates all objectives, policies and procedures without other input.

negative style but some positives, saves time + quick results crisis.

employees = no doubt and eliminates confusion

democratic leadership

participate leadership

encourages joint decisions/allows team to be involved

grow confidence+ collective performance of workforce which in turn usually boosts morale of workforce

downside = long time to make decisions, avoid responsibility

laissez faire leadership

free-rein leadership

not exercise control over workplace, supplies employees resources and information

independent thinkers, creative, intrapreneurial and competent and have a high level of integrity

may create uncertainty and confusion (especially empployees unsure what to do - goals)

describe control

checking current performance against predetermined standards that were set in the planning phase to ensure there is progress in achieving bs objectives. proper planning, organising and leadership makes the task of control easier.

what are the 3 steps in the controlling process?

establish standards

measuring actual performance

corrective action

what are 5 components of a good control system?

suitable

flexible

motivate staff

economical

aimed at the future

what is communication

process of exchanging information, opinion, views and ideas between staff members and management.

aim of clear top-down communication= helps employees understand objectives

coordination

vital succeed, management dealing with a variety of different perceptions, opinions, interests and attitudes of both internal and external stakeholders = coordinate - same objectives

tangible + intangible resources optimally

what are the 5 principles of coordinating resources?

clear objectives

comprehensive policies

induction

chain of command

liaison between departments

delegation

allocation of responsibility and authority to subordinates. Employee responsible perform task

continuous monitoring

where is worker discipline guided by?

Labour relations Act

what is the purpose of discipline?

to improve future of behaviour of employee

what does the nature of the discipline depend on?

the seriousness of the offense

what is the common misconception regarding discipline in a business?

3 written warnings = dismissed

what is examples of disciplinary action given by a business?

may range from informal discussion between the manager and the employee for a minor offence, to a verbal warning, a written warning or even a instant dismissal (after disciplinary hearing held) for a serious offense.

what is important for employees to know about discipline

what is regarded as misconduct (rule broken) and what the likely disciplinary action will be . Outlined in the code of conduct

what influences decision making?

political factors (laws implemented ruling party)

economic factors (inflation,taxes, economic growth, exchange)

social factors (religious movements, cultural differences, unemployment rates, crime levels)

technological developments (communication methods, improved methods of transportation)

behaviour of competitors or potential new competiors

external stakeholders (suppliers of bs involved in the distribution process)

expectations of customers (unbiased when decisions made. Personal influence + potential customers = eliminates = decision making process = integrity)

motivation

employees have to feel they have a special interest in order to fulfill responsibility

performance depends on 2 variables

ability to do work

willingness to complete activities

What is Maslow's hierarchy of needs?

looks at needs not satisfied = starting point(basic needs)motivation states once unsatisfied need is satisfied move onto more complex need. look at what can be done to satisfy need

what does maslow hierachy consist of

physiological needs (basic needs e.g. food)

security needs (need to feel safe e.g. fear of losing job)

social needs (love and belonging)

esteem needs (need for power, prestige and status)

self-actualisation (desire full potential)

What is Adam's Equity Theory?

argues sound relationships between performance of workforce + rewards received. he suggests workforce focus equity of rewards i.e. individuals will use their own subjective judgement to determine fairness of their rewards. Looks at the ratio between inputs + compares to rewards received.

Employees input = person's knowledge, skill, experience, efforts and time

balance or imbalance of rewards

inequitable rewards

dissatisfaction leads to reduced output

balance or imbalance of rewards

equitable rewards

continuation at the same level of output

balance or imbalance of rewards

more than equitable rewards

works harder and exceeds required output

definition of an entrepreneur according to Richard Branson

an entrepreneur is a person who organises factors of production in a particular manner to gain customer's attention

what are entrepreneurial characteristics (competencies)?

initiative

planner

persistence

concern for quality

risk taker

self-confidence

assertiveness

experience

information gatherer

problem solver

credibility

what is the difference between a manager and a entrepreneur?

motive

manager = employment as he/she works in a business that already exists. A manager works to ensure success of the bs

entrepreneur = primary motivation is to build his her own bs, to gain personal gratification and to ensure that he/she is successful

manager vs entrepreneur

status

manager = employee of bs

entrepreneur = owner of bs

manager vs entrepreneur

risk

manager = not bear any financial risk apart from job security

entrepreneur = assumes all the risk involved in bs

manager vs entrepreneur

rewards

manager = for a job done with a salary and sometimes a bonus

entrepreneur = profits from bs

manager vs entrepreneur

innovation

manager = execution of plans

entrepreneur = person who innovates through creative thinking and creative problem solving

what are 6 activities performed by an entrepreneur?

idea generation

market research

raising funds (obtain funds)

recruitment

procurement

implementation of idea/ project implementation

what is a intrapreneur?

found large bs working as an employee who creates new ideas and converts into products and services within framework

valuable for business's as competition between bs , progressively global

what is an ultrapreneur?

identifies viable business opportunities for established businesses

procures management team highly competent produce market ideas

sell large number of shares as soon as established

aim = achieve max return in shortest possible time and repeat process over and over again

e.g. Richard Branson

Brian Joffe (SA example)

list 4 other types of entrepreneurs

socio-preneur

techno-entrepreneur

eco-preneur

tender-preneur

socio-preneur

someone that uses innovative bs ideas to solve social (community) problems.

Aim = not create profit for themselves but rather to use profits to achieve widespread social improvements

techno-entrepreneur

uses technological advancements/development to build new bs ventures.

2 types

technology developer (a person who develops unique tech concept that drives new bs)

technology user (person who identifies and understands how concepts best applied to meet needs and wants)

eco-preneur

creates bs based solving environmental problems by creating environmental friendly products/services

tender-preneur

develops entr bs based around tender like apply for some cases bs exists, but also operations = adopted to meet requirements of tender. makes living by getting tenders then subcontracting it to other bs